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Amazon targeting FMCGs to boost ad revenues

Amazon is looking to boost its ad revenues by attracting FMCG brands as advertisers across both its website and mobile offerings.

Reuters reports that at ad:tech San Francisco Amazon’s VP of global advertising Lisa Utzschneider said that boosting ad sales to FMCGs was a “huge opportunity” for the company.

There are millions of mums researching products and buying online. Mums have $2trn of annual spending power."

Amazon began selling ad space across its web properties six years ago, and recently began doing the same for Kindle devices.

US FMCG online ad spend will approach $5bn by 2015 according to eMarketer, so it's little wonder that Amazon wants to tap into the market.

Utzschneider said that currently only 4% of Amazon shoppers buy FMCG goods via the site, so there is huge growth potential, particularly when you consider Amazon's wealth of customer knowledge.

The e-tailer recently ran an ad campaign for Huggies Slip-ons nappies across its websites and Kindle devices that included an offer in some of the ads for $2 off - plus a 20% discount on Amazon's subscribe-and-save program.

Some of the ads also had customer reviews embedded in them.

According to Utzschneider the ads made consumers 30 times more likely to find out more about the nappies and 13 times more likely to buy them.

Furthermore, the ads that ran on mobile devices helped double sales of Huggies Slip-ons via such devices during the campaign.

The drive to boost ad sales comes as part of a move by Amazon to diversify its revenue streams away from simply selling books and DVDs.

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